Amazon has given the Federal Trade Commission a new, urgent deadline to decide something about its proposal to buy MGM, The Wall Street Journal wrote Thursday (March 3).
The move, which could go for $6.5 billion to buy the movie and TV studio, could make it hard for the FTC to challenge the deal before the tech giant completes it.
Amazon recently told the FTC that it’s provided all the information needed by antitrust investigators. The certification has made it so the FTC will have to make a choice on whether to file a challenge, or allow the deal to move forward without interference.
Even if the deal expires, Amazon might face trouble due to the commission’s ability to challenge mergers even after they close. However, the Amazon closing of the deal would cut the uncertainty by a little for both companies, and would let Amazon move on with its plans.
The FTC might still file a challenge, but it could lead to antitrust legislation dragging on for “months or years,” according to the report.
The European Union’s antitrust enforcers have also been reviewing the deal and might take steps that would impact the U.S. deadlines or give the FTC more time. Last month, PYMNTS wrote that the EU will decide on the merger by March 15.
See also: EU Regulator to Rule on Amazon’s MGM Deal by March 15
The deal would give Amazon the strength to more easily compete with streaming services, and would bolster the eCommerce giant’s Prime Video streaming service to add more subscribers.
The EU competition enforcer could approve the deal with or without remedies, and could also open an investigation if there are serious concerns.
PYMNTS wrote that Mike Hopkins, senior vice president of Prime Video and Amazon Studios, said last year that the real value of the deal came in the value of the 4,000 MGM movies that are part of the historic studio’s catalog. He said Amazon had plans to “reimagine and develop” those movies.
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